BENGALURU: Reliance Media Works (RMW), formerly Adlabs Films and a part of the Reliance ADA group, reported lower consolidated net loss in the April-June 2013 quarter as compared to the preceding quarter (January-March 2013) and the corresponding quarter (April-June 2012) of 2012.

RMW‘s net worth has eroded, however, having regard to revenue visibility of new businesses in film and media services, improved operational performance of exhibition business, financial support from its promoters, further restructuring exercise being implemented etc, the financial statements have been prepared on the basis that the company is a going concern and that no adjustments are required to the carrying value of assets and liabilities.
Important Notes:

(1) Since the previous financial year of the company was extended till 30 September 2012, the result for the April-June 2013 quarter will be referred to as Q3-2013, January-March 2013 quarter as Q2-2013 and April-June 2012 quarter as Q3-2012 in this report/analysis.
(2) Notes of the attached financial statement must be read along with this analysis.
For the current quarter (Q3-2013) RMW reported a consolidated net loss of Rs 123.60 crore which was 5.9 per cent lower than the Rs 131.30 crore (y-o-y) for Q3-2012 and substantially lower by 44.4 per cent as compared to the Rs 222.12 crore for Q2-2013 (q-o-q).
Details of RMW‘s standalone financial information are: Turnover Rs 126.40 crore for Q3-2013 as compared to Rs 122.61crore for Q3-2012. RMW‘s loss before tax for Q3-2013 was Rs 83.73 crore as compared to the Rs 91 crore loss for Q3-2012. Loss after tax stood at the same figure for Q3-2013 and the previous year‘s corresponding quarter (Q3-2012).

Let us look at the other figures reported by RMW for the April-June 2013 (Q3-2013) quarter
RMW reported a total income from operations of Rs 180.16 crore for Q3-2013, 10.91 per cent lower than the Rs 202.15 crore in Q3-2012, but 24.6 per cent higher than the Rs 144.63 crore for Q2-2013.

Its total expense for Q3-2013 was Rs 238.97 crore, 6.5 per cent lower than the Rs 255.56 crore for Q3-2012 and 2.2 per cent lower than the Rs 244.38 crore for Q2-2013.
RMW‘s net loss from operations at Rs 58.80 crore was 10.1 per cent higher than the Rs 53.41 crore of Q3-2012, but substantially lower than the Rs 99.75 crore in Q2-2013.
Let us look at RMW‘s segment results
Film Production Services, Theatrical Exhibition, and Television, Film Production & Distribution are the three segments. Pursuant to the business restructuring exercise of Film Production Services, with effect from 1 October 2011, animation business is no longer considered to be a part of this segment.

Film Production Services reported income of Rs 41.62 crore for Q3-2013, 2.4 per cent lower than the Rs 47.88 crore for Q3-2012, but 14.33 per cent more than the Rs 36.40 crore for Q2-2013.

Loss before interest and tax by this segment was Rs 33.55 crore, almost double (more by 93.9 per cent) the Rs17.31 crore in Q3-2012, but 10.14 per cent lower than the Rs 37.53 crore loss incurred in Q2-2013.

RMW‘s Theatrical Exhibition segment reported income of Rs 127.56 crore for Q3-2013 (Includes exceptional items of Rs 60 crore) which was 39.56 per cent lower than Rs 204.29 crore for Q3-2012 and 11.86 per cent lower than the Rs 144.71 crore in Q2-2013.

Loss before interest and tax by RMW‘s Theatrical Exhibition was Rs 24.25 crore for Q3-2013 was however 10.46 per cent lower than the Rs 29.09 crore for Q3-2012 and less than a quarter (4.42 times less or 21.74 per cent) of the Rs 111.56 crore loss incurred in Q2-2013.

RMW‘s Television/Film Production and Distribution income of Rs 13.25 crore which contributed to just 7.4 per cent to its consolidated revenues in Q3-2013 was the only one that reported a profit before interest and tax of Rs 4.34 crore in Q3-2013 which was 60 per cent higher than the profit before interest and tax of Rs 2.73 crore in Q3-2012. This segment had reported a loss of Rs 3.50 crore for Q2-2013. Revenue from this segment in Q3-2013 was higher by 13.3 per cent as compared to the Rs 11.7 crore for Q2-2012 and 25.7 per cent higher than the Rs10.54 crore for Q2-2013.

MUMBAI: With just a little more than two months left for the 12 minute per clock hour advertising cap to be implemented, the broadcast industry is applauding Minister of Information & Broadcasting Manish Tewari?s recommendation. The minister has reportedly stated that the ad cap deadline should be moved ahead to December 2014 from 1 October 2013 as suggested by the Telecom Regulatory Authority of India (TRAI).

Times Television Network MD and CEO Sunil Lulla feels that the recommendation is in sync with reality. ?From a news broadcasters? point of view, we have put forward similar thoughts many a times with concerned bodies. Considering the difference between cost of production and the revenue generated, it would be better if news broadcasters? were allowed to self regulate. We hope that the request is heard,? he anticipates.

Similarly, a senior official from the News Broadcasting Association (NBA) agrees and adds, ?Look at the cost for each broadcaster;  if he has to increase eight minutes of content per hour that is close to three hours of more content a day. Where will a broadcaster get so much money from when his ad revenue is going down? Even producers are going to demand more money as to produce a minute of content takes up a good one hour. There are 10,000 things that need to be done depending on the final decision...?

The NBA official further elaborates, ?As broadcasters we don?t know what to do. Everyone is saying different things, so who do we believe? What if a channel actually starts implementing changes and then they extend the date, it?ll be in a mess.?

 ?We are happy that he?s understood our problem which is a genuine one and we hope that he will be able to convince TRAI. And we need take a decision soon,? say both the broadcasters.

But what about other channels/genres? ?One shoe for all is what I believe rather than two which might create confusion,? Lulla clarifies.

To put forward advertisers? viewpoint on the issue, Advertising Agencies Association of India (AAAI) president Arvind Sharma elucidates, ?AAAI has always supported the thought implementing the ad cap after we know what is the full impact of digitisation is known.?

However, when we contacted a senior official from TRAI, he told us that they too haven?t received any official ?recommendation? from the ministry about postponing the deadline, but have only read about it in new reports.

In May 2013, TRAI had mandated that general entertainment TV channels (GECs) and news channels should reduce their advertising air time per hour from16 minutes and 20 minutes respectively to 12 minutes by 1 October 2013. The reason given by the authority was that the advertising clutter was resulting in a poor viewing experience for TV watchers.

Industry is hoping the minister follows up his suggestion with a formal appeal to the TRAI. ?The bullet has left the gun?,? says an official from the Indian Broadcasting Foundation who was caught in surprise by the minister‘s statement that TRAI should posptone the ad cap until cable TV digitsation is completed in September 2014.

?We haven?t received any communication from the ministry regarding this. And if we go by the communication we have received in the past few days, there seems to be a conflict,? he says sounding puzzled. 

In the past too, there have been many ups and downs in the broadcasting industry. The whole ratings tamasha which went on for a fortnight was resolved when the three stakeholders - Indian Broadcasting Foundation (IBF), Advertising Agencies Association of India (AAAI) and Indian Society of Advertisers (ISA) - finally came up with a solution of providing the television viewership in thousands (TVT) to media and public.

We at Indiantelevision.com can only hope that the recommendation doesn?t boil down to another controversy, but has a happy ending. However, one does wonder why the statement was made. Do up-coming elections have anything to do with it? Let?s just wait and watch?

MUMBAI: This Independence Day saw the who?s who of the film and television fraternity come together in a unique initiative by Star India to support the victims of the Uttarakhand tragedy.

Christened Saath Hain Hum Uttarakhand, the seven-hour-long event held at the NSCI grounds in Mumbai was telecast live across the entire Star India network.

In an exclusive interaction with indiantelevision.com, Star India CEO Uday Shankar spoke at length about the conviction behind this noble cause and Star India?s philosophy.

?When such a tragedy occurs, there is a need to do something different. At Star, we have a very deep emotional connect with the audiences at large," expresses Shankar. "Whether it is through our programming or by connecting with the film and television industry for this cause, we feel it is our duty to help people who are in pain there.?

Star‘s Uday Shankar says the network is not only number one in terms of content but it also has a very strong social conscience

Shankar points out that the initiative helped reinforce another point that Star is not only number one in terms of content but it also has a very strong social conscience. "The endeavour was also born out of his sense of responsibility toward the large number of people that have made all the channels of the Star network successful," he highlights. ?People?s belief brings with it a huge responsibility, which we are continually aware of, and try and live up to. Doing this for the rebuilding of Uttarakhand is yet another acknowledgement of our responsibility."

So why I-Day? According to Shankar, Star India had wanted to do something big at the time the tragedy occurred but the logistics were daunting. That?s when he and his team started taking the creative community into confidence.

?Obviously, an event on such a big scale takes time, as you have all the top stars from the industry and you need some time to bring all of them together. So, 15 August was very appropriate because both its symbolic and philosophical values were in sync with our objective,? explains Shankar.

What was the idea of airing the event live? ?Live has an element of intensity, immediacy and urgency. We wanted to share with the people how the creative community, comprising media, television and film has responded spontaneously to the disaster. We wanted to capture that intensity,? gushes Shankar.

Are he and his team happy with the response the event garnered? ?I was overwhelmed by the positive response from all the top stars and everybody from the film and television industry. Bringing together so many people is a challenge, but everybody was more than willing the moment we said it is for Uttarakhand victims. While some of them could not make it because of their own commitments, it was very satisfying to see them all so willing to lend their support to the cause,? exults Shankar.

Star India has decided to encourage viewers from across the globe to donate generously toward the victims of the tragedy

Have the network?s expectations been fulfilled, at least to some extent? According to Shankar, the immediate and material consideration was ?to raise as much contribution as we can so we can play a more effective role in rebuilding Uttarakhand.?

In fact, as a natural next step, Star India has decided to encourage viewers from across the globe to donate generously toward the victims of the tragedy.

Donation lines will be open from 15 August to 7 September and the funds collected will be channeled to the People?s Science Institute (PSI) and Himmotthan society NGOs partners. How the funds are used will be overseen by a team of independent auditors.

A large part of undertaking the initiative was about replying to the perennial question faced by the media as to whether it is living up to its social responsibilities or not.

?Whether it is the political class or the rest of the country, this question is being put to journalists, people in the field of entertainment, TV, print, all of us, every day. To which we wanted to say, ?Look, we are more alive! Doesn?t matter whether we are news or entertainment, we are there when society needs us?,? said Shankar.

Before concluding the interview, Shankar bared his heart on what the country should do in such situations.

 ?Within the creative community, there is a strong desire to be socially more relevant, more meaningful and contribute more effectively. Everybody - whether they are actors, directors, producers, technicians and many more - has that kind of desire. What we require is the leadership, and I think that is why we all came together so we could provide that leadership to channelise that urge and those emotions. If we can do that, I think the country can do a lot more."